U.S. Treasury Secretary Janet Yellen will continue to lobby her G20 counterparts for a cap on Russian oil prices. The goal is to deprive Moscow of funding to continue the war in Ukraine, officials said.
Joe Biden’s secretary will be in Bali, Indonesia, to attend the meeting of finance ministers and central bank governors on July 15-16, a senior
Treasure.
An international coalition?
A « global and growing coalition » of countries shares Washington’s goals. These consist in depriving the Russian leader Vladimir Putin of income to finance his army, he estimated.
The finance ministers are also working to « address the impact this war is having on energy prices. This is particularly damaging to emerging markets.
Western sanctions against Russia following the invasion of Ukraine have caused a spike in world prices. This increase affects food and fuel, creating a political headache for the leaders.
The leaders of the G7 countries have committed themselves to develop a ceiling price on Russian oil at the world level.
European countries have been trying to reduce their own consumption of Russian hydrocarbons since the beginning of this military intervention. At the same time, Moscow’s exports to Asia have increased.
« The more we talk to different countries about it, the more they understand … the rationale for capping prices and some of the risks of not doing so, » the official said.
The U.S. proposal is based on the European Union’s plan. It aims to stop imports of Russian oil by the end of the year.
The EU has also decided to prohibit insurers and reinsurers from covering the maritime transport of Russian oil. This is to hinder Moscow’s ability to ship crude to its remaining customers.
However, Washington is seeking an « exemption » from the insurance ban for oil that would be shipped under the price cap, another Treasury official said.
The goal is « to allow Russian oil to flow without Russia reaping the financial benefits of this flow, » the official said.
Janet Yellen will travel to Japan before the G20 meeting and to South Korea after. It will discuss the intensification of sanctions against Moscow. In the program is also present the securing of supply chains, also indicated the Treasury.
